The rising costs of input, adverse foreign exchange movement and higher royalty payout have brought down the net profit of the country’s largest carmaker Maruti Suzuki India (MSI). The company has reported 17.80 per cent decline in its net profit for the third quarter ended December 31, 2010 at Rs 565.17 crore.
MSI posted a net profit of Rs 687.53 crore in the same period a year ago, the company said in a statement. Net sales during the third quarter, however, increased by 26.49 per cent at Rs 9,276.73 crore as against Rs 7,333.77 crore. In terms of units, MSI’s total sales increased by 28.16 per cent at 3,30,687 units as against 2,58,026 in the year-ago period.
“The third quarter this year compared to the same period last year was marked by pressure on margins primarily due to adverse foreign exchange movement and higher royalty payout,” the company said.
Domestic sales during the quarter increased by 36.83 per cent to 2,99,527 units as against 2,18,910 units in the corresponding quarter last fiscal. This growth comes from the high volume sales of Alto k10, Wagon R and Swift. Maruti had posted the highest-ever sales in the domestic market with 1,07,555 units in October 2010. In November 2010, the domestic sales touched the 1 lakh mark a second time in the same quarter when the company sold 102,503 units.